Bill Smith, ARRA Editor: Some background: After crude oil costs, taxes are the second largest contributor to the price paid at the pump. Together Federal and State excise taxes on fuel account for an average cost of approximately 62 cents per gallon (cpg) . Rates include Federal excise taxes 18.4 cpg for gasoline and 24.4 cpg for diesel. Arkansas charges 40.2 cpg for gasoline and 47.2 cpg for diesel. In addition, Arkansas also charges a .3 cpg environmental assurance fee for underground storage tank fund. While Arkansas is by far not the highest, they have just passed an increased severance tax on natural gas to be used to help funds Arkansas highways and roads.On Friday, Stephens Washington Bureau reported:
The four House members from Arkansas on Thursday called for congressional hearings into the high cost of diesel fuel that is harming top trucking firms in the state. The written request to top Democrats on the House Energy and Commerce Committee comes as diesel prices hover near a record $4 per gallon. . . . "As businesses across the country are forced to absorb the cost of surging diesel prices, it can be expected that the burden will ultimately fall on the consumer," the lawmakers wrote. " . . . It is imperative that Congress examine the ripple effects caused by record high diesel fuel prices."The delegation's action follows a March decision by the Arkansas Trucking Association to press for congressional hearings on the impact of high diesel prices.The trucking association represents 84,000 Arkansans and more than 300 corporations. They include J.B. Hunt Transport Services, ABF Freight System and USA Truck.Yes, the high cost of diesel fuel is affecting the economy. Does anyone remember when diesel prices were lower than gasoline prices? The Congressmen's concerns can also be applied the high cost of gasoline. High gasoline prices are impacting the economy because citizens are paying more for gas and have less on discretionary money to by goods and services, travel to and with family, participate in recreation or trips, etc. In addition, low income wage earners and people on fixed incomes are significantly affected!
It is time for Arkansas' four "concerned" Congressmen to do something for their constituents that could quickly impact prices at the pump within Arkansas. They could join together and call for public meetings in Arkansas with state officials starting with with Arkansas Governor Beebe. With the significant increases in excess revenue generated by a myriad of Arkansas taxes, it is time for an emergency (even if temporary) reduction in the Arkansas taxes collected on gasoline and diesel fuel. We need relief -- now!
Tags: Arkansas, diesel fuel, gasoline, gasoline tax, Representative, the economy, US Congress, Bill Smith To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!
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